According to Foxtons, the lettings market is showing early signs of a seasonal recovery, with activity picking up after the winter slump.
The agency said that although tenant demand remains below last year’s levels, the pace is improving as the spring season approaches, supported by a continued increase in available supply across London.
February data provided by Foxton points to the market being stable rather than bullish. Applicant registration remains down year-on-year but has increased from winter lows, while renters’ budgets are largely unchanged, showing affordability pressures haven’t really gotten worse.
At the same time, supply continues to increase, reducing competition. New listings are up over the past year, and the number of renters per instruction has declined, giving tenants more choice and indicating a more balanced market as activity returns.
Sarah Tonkinson, Institutional PRS and MD of Build to Rent, said: “If you track London’s build to rent performance as closely as we do, you can feel the momentum building up as early as 2026. The capital is continuing to absorb new stock, supported by particularly resilient rental demand. The patterns across its submarkets are becoming sharper by the week. are commensurate with the pressures and opportunities in the catchment.
“For assets approaching launch, your priority should be your position in London’s changing rental landscape and supporting your strategy with serious data. The best performing buildings this quarter are proving that when the groundwork is right, they can deliver with real confidence across London.”
Foxton’s Year-to-Date Key Market Indicators
| supply
new instructions (year on year) |
demand
New Tenant Registration (YoY) |
|
| all london | -5% | -12% |
| Middle | -23% | -19% |
| East | -1% | -13% |
| Answer | 16% | -13% |
| South | -10% | -13% |
| West | 29% | 8% |